Employee Performance and Organizational Dynamics

This assignment explores the complex relationships between employee performance, organizational dynamics, and individual factors. It examines how different components of resistance to change interact with organization-based self-esteem, employee involvement, and job performance. The study also investigates the impact of compensation on employee performance, leader-member exchange, transformational leadership, and work engagement. Through a comprehensive review of literature, this analysis aims to provide insights into the intricacies of organizational behavior and employee dynamics.

Employee Relations in
Global Era

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Value and importance of employee relation....................................................................1
P2. Fundamentals of employment law...................................................................................3
TASK 2............................................................................................................................................4
P3. Different types of right, duties and obligations that an employer and employee have
within workplace. ..................................................................................................................4
P4. Advice related to the rights, duties and obligation of employment relationship to ALDI5
TASK 3............................................................................................................................................6
P5 Conduct and complete a stakeholder analysis for a given organisation............................6
TASK 4............................................................................................................................................7
P6 Analyse the impact of both positive and negative employee relations on different
stakeholders............................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Employee relation refers to several actions that has been performed by employer in order
to maintain healthy relation with employees. An organisation that maintain healthy employee
relation provide consistent and fair treatment to its employees that further help them in remain
committed toward their work and stay loyal to company (Crespo and et. al., 2011). ALDI is a
discount retail supermarket which operates its business internationally and offer variety of
product in categories like food, beverages, sanitary product and household essentials. This
project contains a detail description about value and importance of employee relation for an
organisation along with fundamentals of employment law. In addition to this it describe about
several rights, duties and obligation that employer and employees have at workplace along with
suggestions to improve employee relation by following it. This also includes stakeholder analysis
and positive as well as negative impact of employee relation over different stakeholders.
TASK 1
P1. Explain value and importance of employee relation in ap[plication with organisational
example?
Employee relation is defined as an efforts made by company for maintain a relationship
between employees and employer. An organisation with healthy employees relation are
considered as more productive and competent at marketplace because happy employees work
with more efforts and dedication. The reason behind it is that when employees get fair and
consistent treatment then they remain committed to their job and contribute toward the
accomplishment of organisational goals (Dávila and Piña-Ramírez, 2014). ALDI is an
internation retailer which offer variety of products through its supermarket that operates in
different part of world. It maintain a large workforce that highly contribute toward expanding
market share by keeping customer satisfied with their service through maintaining direct
interaction. So, it is very essential for company to maintain healthy relation with its employees to
keep them happy and loyal toward company.
From different survey it has been found that the employees of ALDI are complaining that
they are pressurize to work harder as well as extra hours. This is the major issue which creates
dissatisfaction among workforce and also leads to employees turnover along with negative
publicity of brand. So in order to overcome this, ALDI must put more emphasis toward
1

improving its relation with employees in order to reduce workforce issue and maintain their
performance in marketplace.
Following are the value and importance of maintain better employee relationship with an
organisation:- Increase productivity:- By maintaining a better relation with employees, ALDI will be
able to make company a better place to work which support in influencing employees to
work more effectively (García‐Cabrera and García‐Barba Hernández, 2014). As when an
employee is happy to work for company then it will put more efforts toward work for
enhancing productivity and this in turn will help company in generating more revenue. Discourage conflicts:- When employees are treated fairly then they started following the
instruction provided to them regarding their work. This results in less stress among
employees which in turn reduce the chance of conflicts among the employees toward
management.
 Retain loyal employees:- A worker who experience a negative environment and doesn't
have amicable relation with its employer are more likely to leave the organisation. So by
maintaining healthy relation with employees ALDI will be able to create a workforces of
loyal employees who stay and work for organisation for longer period of time.
These all are the benefit that ALDI will get by maintaining a healthy relation with its
employees at workplace. Following are the mechanism through which ALDI can improve
employees relation that support it to overcome from its current issue:- Delegation :- ALDI must delicate some authority among its employees in order to
enhance their skill by challenging them with hard tasks. This help in increasing their
confidence and trust toward management which help in improving employee-employer
relationship (Hameed, Ramzan and Zubair, 2014). Divide work:- ALDI can improve its relation with employees by reducing their work
stress through dividing their work among others. This will provide dual benefit that
employees be able to complete their task on time and organisational objectives will be
accomplished.
 Appreciation over performance:- It is one of the most essential factor that must be
consider by ALDI for creating better employees relation. Company must appreciate also
2

reward its employees over their better performance which support in keeping workforce
motivated toward their work and satisfied with employer policies.
P2. Explain the fundamentals of employment law that applied to specific organisational example
The major issue faced by ALDI is increasing dissatisfaction among employees regarding
their job due to high pressure over employees in term of their work and extra hours which they
give toward work (Hogh, Hoel and Carneiro, 2011). This issues has affected the employer-
employee relation up-to a large extent and also leads to negative publicity in marketplace. So in
order to overcome this ALDI must focus over imposing several employment law within their
organisation that support in developing a sense of trust among employees toward management.
Employment law consists of certain guidelines or policies imposed by government to protect the
interest of workers at workplace and protect them from any sort of exploitation. Following are
some Act involve within employment law which ALDI must follow in order to improve its
relation with employees and its image at marketplace. These are explained below:
Working time regulation 1998:- It is an employment law imposed by UK government
with an aim to limit the working hour of employees so that they can not be exploit by its
employer. As per this law worker cannot lawfully need to work for more than 48 hours within a
week. In addition to this, it also provide workers a benefit of minimum daily rest period in each
working day or between their shift. This law must be implement by ALDI at its workplace which
help in limiting the work of employees and also help in reducing their stress and dissatisfaction
toward company.
Flexible working regulation 2014:- It is an another Act of employment law which is
generally imposed by UK government to provide an option of flexible working hour to
employees where they chooses time to work as per their need. In order reduce the issues of
employees regarding their working hour, ALDI must implement this law in order to favour its
employees a time and location in which they prefer to work (Maurer and Chapman, 2013). This
help in minimizing the issues and dissatisfaction among employees.
Discrimination Act:- It is a body of law which restrict the practices within an
organisation regarding any sort of discrimination to employees in term of their age, gender,
culture or nationality and promote quality at workplace. ALDI must implement this law and
focuses toward providing equal opportunities to its employees that further support in improving
the performance as well as productivity of employees at workplace.
3

Contract of employment Act 1963:- This is an Act of UK parliament which introduce the
requirement of legal notice regarding the terms and conditions over which an employees have to
work within the organisation. By clearing working condition in advance with employees, ALDI
will be able to avoid conflicts in future.
Health and safety law: This act states that employer are required to ensure safe working
environment to customers in which they gives major priority to employees health. In context to
ALDI, it is required by manager to conduct safe working practices which ensures employees that
they will not face any risk related violence at workplace.
TASK 2
P3. Explain different types of right, duties and obligations that an employer and employee have
within workplace.
An employer is responsible for providing a favourable and safe environment to work so
that its employees can perform their tasks effectively. So in this regard there are several
obligation that are required to be perform by an employer in favour of its employees. It will help
ALDI in keeping customer satisfied with their work as well as organisations. Following are the
rights and obligations of employer:
Obligation or duty of employer:
 Fair treatment:- This is a prior duty of employer that it must treat its employees fairly
and does not exert poor treatment or discrimination sort of behaviour in front of
employees (Mowday, Porter and Steers, 2013). As it may lead employees to loose
concentration and motivation in their work which also results into employee turnover.
Under the Fair Labour Standards Act, ALDI is obliged to treat its employees fairly and
should not force them to perform operations that are beyond their capability.
 Safety:- An employer has a duty to provide a safe and secure environment to its
employees where they can work freely and without any fear. Under Health and Safety
Act, ALDI is obliged to create such a workplace which is safe enough for employees to
work and doesn't involve any sort of risk to health. This support ALDI by enhancing their
productivity as well as employees satisfaction regarding their job.
Rights of employer:-
4

 The employer has a right to set standard regarding their criteria of recruiting best person
for their job position in term of their capability, educational background and experience.
 Employer has a right to demand from their employees to work in the best interest of
company and not their own and they must not solicits the business for their personal
benefit (O’Leary and Pulakos, 2011).
 The employer has a right to demand from its employees that the confidentiality
information or trade secret of company must not be shared to third party.
Apart from all this, employees also poses certain duties or obligation that they are
required to perform for the interest of organisation as it is their morale responsibility. In addition
to this employees have certain rights which help them from being protected against any sort of
discrimination or exploitation at workplace. These rights and duties are explained below:-
Obligation or duty of an employee:
 Employees are obliged to cooperate with employer in Health & safety matter and must
not misuse the equipments that has been provided to them for safety purpose at
workplace (Silva, Hutcheson and Wahl, 2010).
 Workers are obliged for not sharing information of employer publicly or to the third part
until and unless it has been asked by the employer.
 It is the duty of employee that it must compete in business against its employer while
they are still working within the organisation as a regular worker.
Rights of employee:-
 Working condition:- Employees has a right to expect or demand from its employer a job
within safe environment which doesn't involve any sort of hazard or undue stress.
Harmful working environment also add more unreasonable job responsibility which not
any employee to perform its task effectively.
 Equal employment opportunity:- Employees has a right to work in an environment
which is free from harassment and discrimination as per Equality Act. This law safeguard
the right of employee and provide them an opportunity to demand for equal opportunity
from employer in term of pay, remuneration, working hour etc.
5

P4. Determine appropriate advice related to the rights, duties and obligation of employment
relationship to ALDI
Employer has several obligation as well as duties that it must fulfil effectively in order to
maintain a healthy relation with its workforce which further support company to retain its
employees for longer period of time. In addition to this employees are also responsible to
contribute toward improving their relation with employees by performing their part of
obligations (Verwijmeren and Derwall, 2010). This will also support in minimising several
issues that are usually faced by both the parties at workplace. Following are the advises
recommended to ALDI:
 Employee relationship:- In case of ALDI, employees are being forced to work harder and
for longer period of time despite of their regular working hour which is main reason
behind workplace relation related issues. So in order to improve its relation with
employees, ALDI must perform its obligation of fair treatment for its workforce. For this
ALDI can either hire more employees at the time of work pressure so that task can be
divided among other staff or it can divided the shift of employees so that they can get rest
from their work.
 Health & Safety:- Apart from this ALDI must focuses toward providing a healthier and
safe working environment where employees can work freely without any fear. employees
has a right to demand a healthy workplace environment with better working condition. In
this employees can voice against this extra working pressure so that strict action can be
taken or they demand for extra pay over their work.
TASK 3
P5 Conduct and complete a stakeholder analysis for a given organisation
Stakeholder refers to group of people who are linked with company and affect or get
affected by actions performed by a company. These group of person are consider as very
essential for an organisation as it contribute toward the success and growth of company.
Therefore stakeholder analysis is very essential for ALDI in order to determine several ways in
which they can influence the functionality of company (Morrison, 2011). Apart from this it also
help in analysing several growth opportunities which stakeholder will provide.
6

This analysis can be performed using stakeholder mapping technique which is generally
used to analyse and identify the need of its stakeholder. It is basically used to analyse all key
stakeholders i.e. primary as well as secondary those who vested interest in operations performed
by a company. This Stakeholder mapping technique will be used to perform analysis over the
key stakeholder of ALDI. This technique work over researching, discussing and debating in
order to determine multiple perspective for entire stakeholder spectrum and for this mapping is
broken down into four phases:-
Low power, low interest – Supplier of ALDI lies in this section. Vendors of company has
many clients so they aren't much interested in changes which are happening in the organisation.
ALDI also have many suppliers and it can be considered as the main reason that their vendors do
not have much power. Stakeholders who are present in this part of the matrix are least important.
Organisation should send their newsletters and other general information of the company on
regular basis.
Low power, high interest – Employees of ALDI do not have much power but they are
highly interested in the decisions taken by management as it directly or indirectly make a huge
impact on them. Beside following the strategy of ''keep them informed'', company can consult
few things with workers which lies in their area of interest and help management in making
decision.
High power, low interest – ALDI has few investors who does not care about day to day
operations of the organisation. They have power to reverse a decision but they do not take much
interest in board meeting as these financial institutions has invested their money in various
MNCs. ALDI should meet the needs of these investors and they should try to keep healthy
relationship with these type of stakeholders.
High power, high interest – Employees in top management, key investors etc. are few
examples of stakeholders who fall under this part of matrix. They make all the important calls for
ALDI and they are concerned about daily operations, as well as, long term plans of the
enterprise. Company should involve them in decision making and their views should be
considered on priority basis.
From this analysis it has been identified that in order to deal with the issue which ALDI
is currently facing regarding the employees dissatisfaction, company is required to focus over
employment engagement. This can be done by involving them during the strategy formulation,
7

inviting suggestions from them and improving the communicational flow so that they feel value
while working within the organisation.
Stakeholder engagement is very essential for a company as they have the capability to
influence the operations performed by company. The involvement of stakeholders within the
organisational processes of ALDI will support company in performing their operations in more
effective manner with mutual contribution of stakeholders. This further support in enhancing its
profitability and market acceptance (Mouriño-Ruiz, 2010). For instance, by involving employees
within the strategy formation and decision making will help ALDI in performing their operation
in a more informed manner. This also help in enhancing the employment relationship within the
organisation which also leads to maximum productivity.
TASK 4
P6 Analyse the impact of both positive and negative employee relations on different
stakeholders.
Employees are very essential part of an organisation which contribute toward the
accomplishment of organisational goals by performing several operations. The growth as well as
success of a company is depend upon the quality of work done by the workforce. Hence ALDI
must focus toward improving its relation with employees in order to enhance their performance
at marketplace and achieve desired success (Mittal and Dhar, 2015). The positive as well as
negative employee relation has a great influence over stakeholder up-to large extent, which can
be better understood through following point:
Impact of negative relation over stakeholders:-
Negative employee relation is one when the employer doesn't put more emphases toward
employees requirement at workplace and don't treat them fairly. This results into job
dissatisfaction among employees, conflicts and several issue may arise related to work which
may affect the performance of employee and that in turn also influence its market performance.
ALDI is currently facing employee relationship issue due to unfair treatment which they exert
toward its workforce. This may influence the performance of the company that have a negative
influence over its stakeholders. For instance, dissatisfied employees may not provide much
attention to customers which lead to shrinking of market that may left company in loss. This also
affect the investors as they find less interest in investing fund within company.
8

Impact of positive employee relation over stakeholder:-
Positive employee relation will help ALDI in improving the performance of its
employees which in turn enhance the profitability of company. This help company in
representing a positive image at marketplace that also contribute toward increasing its goodwill
that support in keeping stakeholder more engaged in action performed by company. For instance,
a good image in marketplace help ALDI in attracting investors to contribute more and support
company in achieving success at marketplace. In addition to this positive relation help in
enhancing the performance quality of employees which help in bringing more customer
satisfaction from the services provided by its employees.
Apart from this negative employee relation will increases the job dissatisfaction that also
leads to higher employee turnover within ALDI. This increase in employee turnover will also
have an huge impact over government relation as ALDI highly contribute in GDP of UK through
job creation, tax contribution and spending with British-based businesses.
So, ALDI must try to maintain a healthy and positive relation with its employees so that
their performance could be improve at marketplace and issues related to work can be minimised.
This further support company in achieving higher profitability and success at marketplace.
ALDI must work toward creating a positive relation with its employees through
providing them various rights like equality pay or opportunity and better working condition at
workplace (Demerouti and et. al., 2010). This help in minimising the conflicts at workplace as
positive relation bring job satisfaction which lead employees to work collaboratively at
workplace. Hence, employees work with more coordination and peace without any sort of work
related issues which leads to accomplishment of organisational success.
CONCLUSION
From the above given information it can be conclude that employee-employer relation
plays an essential role within the growth and success of a company as employees. An effective
employee relation help a company to enhance its productivity that further contribute toward
achieving competitive advantage at workplace. So in order to maintain effective employee
relation an employer must follow employment law such as Working time regulation 1998,
Flexible working regulation 2014 etc. In addition to this employer and employee have certain
rights, duty as well as obligation which both must follow in order to maintain a healthy relation
that also provide mutual benefit.
9

REFERENCES
Books and Journals
Crespo, N. C. and et. al., 2011. Worksite physical activity policies and environments in relation
to employee physical activity. American Journal of Health Promotion. 25(4). pp.264-
271.
Dávila, N. and Piña-Ramírez, W., 2014. What drives employee engagement? It's all about the 'I'.
Public Manager. 43(1). p.6.
García‐Cabrera, A. M. and García‐Barba Hernández, F., 2014. Differentiating the three
components of resistance to change: The moderating effect of organization‐based self‐
esteem on the employee involvement‐resistance relation. Human Resource Development
Quarterly. 25(4).pp.441-469.
Hameed, A., Ramzan, M. and Zubair, H. M. K., 2014. Impact of compensation on employee
performance (empirical evidence from banking sector of Pakistan).International
Journal of Business and Social Science. 5(2).
Hogh, A., Hoel, H. and Carneiro, I. G., 2011. Bullying and employee turnover among healthcare
workers: a three‐wave prospective study. Journal of nursing management. 19(6).
pp.742-751.
Maurer, T. J. and Chapman, E. F., 2013. Ten years of career success in relation to individual
and situational variables from the employee development literature. Journal of
Vocational Behavior. 83(3).pp.450-465.
Mowday, R. T., Porter, L. W. and Steers, R. M., 2013.Employee—organization linkages: The
psychology of commitment, absenteeism, and turnover. Academic press.
O’Leary, R. S. and Pulakos, E. D., 2011. Managing Performance Through the Manager–
Employee Relationship. Industrial and Organizational Psychology. 4(2). pp.208-214.
Silva, N. D., Hutcheson, J. and Wahl, G. D., 2010. Organizational strategy and employee
outcomes: A person–organization fit perspective. The Journal of psychology. 144(2).
pp.145-161.
Verwijmeren, P. and Derwall, J., 2010. Employee well-being, firm leverage, and bankruptcy
risk. Journal of Banking & Finance. 34(5). pp.956-964.
Morrison, E. W., 2011. Employee voice behavior: Integration and directions for future research.
Academy of Management annals. 5(1).pp.373-412.
Robbins, J. M, Ford, M. T. and Tetrick, L. E., 2012. Perceived unfairness and employee health:
A meta-analytic integration. Journal of Applied Psychology. 97(2). p.235.
King, C. and Grace, D., 2012. Examining the antecedents of positive employee brand-related
attitudes and behaviours. European Journal of Marketing. 46(3/4). pp.469-488.
Mouriño-Ruiz, E. L., 2010. Leader-Member Exchange (LMX) The Impact of Leader-Employee
Relationships in the 21st Century Workplace. Business Journal of Hispanic Research.
4(1).
Mittal, S. and Dhar, R. L., 2015. Transformational leadership and employee creativity: mediating
role of creative self-efficacy and moderating role of knowledge sharing. Management
Decision. 53(5). pp.894-910.
Demerouti, E. and et. al., 2010. From thought to action: Employee work engagement and job
performance. Work engagement: A handbook of essential theory and research.65
pp.147-163.
10